Try it out in the sandbox!
See how it works! Place bids as if you were Amy, Peter, and Moe. They are moving into a three bedroom house whose monthly rent is $1,800
Every bidder should bid the most they would be willing to pay to live in each room. It is in each bidder's best interest to bid honestly. Bidding too high increases the chance that a bidder will pay more than a room is worth to them. Bidding too low increases the chance that a bidder will get a room they don't like.
Utility and Surplus
TheRentIsTooDamnFair calculates the utility of each possible assignment of roommates to rooms by adding together each roommate’s bid for the room they were assigned. Optimization is done by choosing the arrangement with the highest utility. The surplus is the difference between the utility and the total rent.
The rent is calculated so that each person gets the same amount of surplus from their arrangment. For example, if you bid $500 for your room, and there is $200 of surplus to be divided over 2 people, then your rent will be $500-$200/2 = $400.